Application of modified delphi in identifying the presence of Incomplete Contract (IC) in Private Finance Initiative (PFI) Projects

Mansor, Syaimasyaza and Abdul Rashid, Khairuddin and Ayob, Mohd Fairullazi and Hasan, Sharina Farihah (2017) Application of modified delphi in identifying the presence of Incomplete Contract (IC) in Private Finance Initiative (PFI) Projects. Malaysian Construction Research Journal, 22 (2). pp. 19-33. ISSN 1985-3807

	PDF (PUBLISHED ARTICLE) - Published Version Restricted to Repository staff only until 30 December 2017. Download (573kB) | Request a copy
	PDF (PUBLISHER WEBSITE) - Published Version Restricted to Repository staff only until 31 January 2018. Download (520kB) | Request a copy
	PDF (MCRJ VOLUME 2-2017) - Published Version Restricted to Repository staff only until 31 January 2018. Download (4MB) | Request a copy

Abstract

Incomplete contract (IC) is a contract that fails to state all the parties’ rights and obligations, has gaps and ambiguities in its terms and conditions. Past studies had reported that most contracts are incomplete to some degree, and this includes Private Finance Initiative (PFI) contracts. PFI involves the private sector to finance, design, construct, operate and maintain an asset through 20-30 years concession period. Due to its long duration, the contracting parties cannot specify all potential contingencies that might occur throughout the term of the contract and PFI contracts are inevitably incomplete. Sometimes IC is preferable because it provides the necessary flexibility to deal with uncertainty, but it also causes inefficiencies and costs, investment problem, contract amendment and so on. The objective of this paper is to report on a study to identify the presence of IC in PFI projects in Malaysia. The methodology used for the study is a two-round modified Delphi. This study is limited only to analyse PFI concession contracts in Malaysia. Based on extensive literature review and content analysis of eight PFI contracts, 12 clauses were identified as incomplete, and the findings become the basis of the semi-structured questionnaire for the modified Delphi. The aim of the modified Delphi is to achieve a consensus of experts’ opinion regarding the presence of IC in PFI projects. Results from the study show that the 12 identified clauses were deemed incomplete. Findings reported herein are considered significant towards effort in enhancing the effectiveness and efficiency of PFI contracts.

Item Type:	Article (Journal)
Additional Information:	5137/58452
Uncontrolled Keywords:	incomplete contract, Private Finance Initiative, gap, ambiguous, renegotiate, change
Subjects:	K Law > K Law (General) T Technology > TH Building construction T Technology > TH Building construction > TH1000 Systems of building construction T Technology > TH Building construction > TH4021 Buildings. Construction with reference to use. T Technology > TX Home economics > TX955 Building operation and maintenance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Architecture and Environmental Design > Department of Quantity Surveying
Depositing User:	IR. DR. MOHD FAIRULLAZI AYOB
Date Deposited:	20 Dec 2017 16:57
Last Modified:	11 Jan 2018 10:37
URI:	http://irep.iium.edu.my/id/eprint/58452

Actions (login required)

View Item